Statistics for Business: Decision Making and Analysis, 3rd Edition

Think About It

1. 23. There is no limit. Even a standard normal with mean 0 and variance 1 can be arbitrarily large, though with tiny probability.

2. 25. The data are skewed to the right, so K₃ > 0.

3. 27. Both are normal with mean 2μ, but the variance of the sum is 2σ² rather than 4σ².

4. 29. A Skewed; B Outliers; C Normal; D Bimodal

5. 31.

   1. A: original; B: rounding (small gaps and stairsteps in the quantile plot).

   2. The amount of rounding is small relative to the size of the bins.

6. 33.

   1. Yes, so long as the weather was fairly consistent during the time period.

   2. No, weather is a dependent process. The amounts might be normally distributed, but not independent.

7. 35.

   1. 5/6

   2. It shifts the mean from $700 to $800.

   3. The mean and SD increase by 5% to $735 and $420, respectively. ...